ML17094A520

Submittal of Decommissioning Funding Status Report

ML17094A520
Person / Time
Site:	Millstone
Issue date:	03/30/2017
From:	Stoddard D Dominion Nuclear Connecticut
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
17-082
Download: ML17094A520 (5)

Text

Dominion Nuclear Connecticut, Inc.

5000 Dominion Boulevard, Glen Allen, VA 23060 Web Address: www.dom.com March 30, 2017 United States Nuclear Regulatory Commission Serial No.17-082 Attention: Document Control Desk NRA/TJS RO Washington, D. C. 20555-0001 Docket Nos. 50-336, 423 License Nos. DPR-65 NPF-49 DOMINION NUCLEAR CONNECTICUT, INC.

MILLSTONE POWER STATION UNITS 2 AND 3 DECOMMISSIONING FUNDING STATUS REPORT Pursuant to 10 CFR 50. 75(f)(1 ), Dominion Nuclear Connecticut, Inc. (DNC) is providing this report on the status of decommissioning funding for Millstone Power Station Unit 2 (MPS2) and Unit 3 (MPS3). provides the following information for MPS2 and MPS3:

Table I- NRC Minimum Financial Assurance Amount as of 12/31/2016 Table II - Funds Held in External Trusts as of 12/31/2016 Table Ill - Current Annual Funding Levels Table IV - NRC Minimum Financial Assurance Summary Table The following information is provided in support and as part of this filing:

1. Preliminary December 2016 Bureau of Labor Statistics indices values are used because the final December 2016 indices values were not available at the time of this filing.

2. The escalation rate of decommissioning costs is held at 0% based on assuming 2% Real Rate of Return.

3. The growth rate on Trust Funds is held at the allowed 2% Real Rate of Return over the escalation rate.

4. No rate regulatory authority citation for MPS2 and MPS3 is referenced because the 2% Real Rate of Return allowed by 50.75(e)(1)(i) is used in the calculations and MPS2 and MPS3 are merchant units.

5. There are no contracts upon which DNC is relying under paragraph 10 CFR 50.75(e)(1)(v) and there were no modifications to the licensee's current method of providing financial assurance since the last submitted report.

6. There are no annual funding amounts for MPS2 and MPS3.

7. Trust Fund amounts shown for each of the units in this report are market value and after-tax on realized gains and losses. The Trust Fund balances have not been adjusted for unrealized gain or loss positions not currently taxable.

8. Since the previous biennial submittal on March 26, 2015 (Serial No.15-100, ADAMS Accession No. ML15093A103) for MPS2 and MPS3 there have been no material changes to trust agreements established for nuclear decommissioning for MPS2 and MPS3.

Serial No.17-082 Docket Nos. 50-336/423 Page 2 of 2 Please contact Mr. Craig D. Sly at (804) 273-2784 if you have any questions or require additional information.

Sincerely, D. G. Stoddard Senior Vice President and Chief Nuclear Officer Dominion Nuclear Connecticut, Inc.

Attachment:

Nuclear Decommissioning Financial Assurance as of 12/31/2016 Commitments made in this letter: None cc: U. S. Nuclear Regulatory Commission Region I 2100 Renaissance Blvd, Suite 100 King of Prussia, PA 19406-2713 NRC Senior Resident Inspector (Units 2 and 3)

Millstone Power Station Mr. R. Guzman NRC Senior Project Manager (MPS Units 2 and 3)

U. S. Nuclear Regulatory Commission One White Flint North 11555 Rockville Pike Mail Stop 08 C-2 Rockville, MD 20852-2738 Mr. Edward Kaczinski Massachusetts Municipal Wholesale Electric Co.

Moody Street, P. 0. Box 426 Ludlow, MA 01056 Mr. Joseph P. McKearin Treasury Analyst Green Mountain Power Corporation 77 Grove Street Rutland, VT 05701 Ms. Carolyn Anderson Director of Transmission Policy & Insurance Green Mountain Power Corporation 2152 Post Road Rutland, VT 05701

Serial No.17-082 Docket Nos. 50-336/423 Attachment 1 Nuclear Decommissioning Financial Assurance as of 12/31/2016 Millstone Power Station Units 2 and 3 Dominion Nuclear Connecticut, Inc. (DNC)

Serial No.17-082 Docket Nos. 50-336 I 423 Attachment 1 Page 1of2 DOMINION NUCLEAR CONNECTICUT, INC.

Nuclear Decommissioning Financial Assurance as of 12/31/2016 Dominion Nuclear Connecticut, Inc.

Nuclear Decommissioning Financial Ass.urance as of: 12/31/2016 Table I:

NRC Minimum Financial Assurance Amount as of: 12/31/2016 10 CFR 50.75 (f)(1)

(Millions ofDollars)

(See Note 5) (See Notes 1&5)

MPS MPS Unit2 Unit3 Total U3 OIM!ershio DPR-65 NPF-49 U2&U3 Ov..nershio %

Dorrinion Nuclear C.onnecficut, Inc. $ 440.8 $ 438.1 $ 878.9 93.47%

Green Moun1ain Pov.erC.orporation n/a $ 8.1 $ 8.1 1.73%

Massachusetts Municioal wee n/a $ 22.5 $ 22.5 4.80%

Total $ 440.8 $ 468.7 $ 909.5 100.00%

Table II:

Funds Held in External Trusts as of: 12/31/2016 10 CFR 50.75 (f)(1)

(Millions ofDollars, differences due to rounding)

(See Note 1)

MPS MPS Unit2 Unit3 Total U3 OIM!ershio DPR-65 NPF-49 U2&U3 Ov..nershio %

Dorrinion Nuclear C.onnecficut, Inc. $ 614.0 $ 603.8 $ 1,217.8 93.47%

Green Moun1ain Pov.erC.orporation n/a $ 10.2 $ 10.2 1.73%

Massachusetts Municipal wee n/a $ 27.2 $ 27.2 4.80%

Total (see Note 2l $ 614.0 $ 641.1 $ 1 255.2 100.00%

Table Ill:

Current Annual Funding Levels 10 CFR 50.75 (f)(1)

(Millions ofDollars)

(See Note 1)

MPS MPS Unlt2 Unit3 Total U3 OIM!ershio DPR-65 NPF-49 U2&U3 Ov..nershin %

Dominion NuclearC.onnecficut, Inc. $ - $ - $ - 93.47%

Green Moun1ain Pov.er C.orporation $ - $ - $ - 1.73%

Massachusetts Municipal wee $ - $ - $ - 4.80%

Total $ - $ - $ - 100.00%

Serial No.17-082 Docket Nos. 50-336 I 423 Attachment 1 Page 2 of 2 DOMINION NUCLEAR CONNECTICUT, INC.

• ,; Nuclear Decommissioning Financial Assurance as of 12/31/2016 Table IV:

NRC Minimum Financial Assurance Summary Table 10 CFR 50.75 (f)(1)

{Millions otoollars - except percentage and years)

{See Note 5) {See Notes 1&5)

MPS MPS Unit2 Unit3 Total DPR-65 NPF-49 U2&U3 Method forProvidi!!j Financial Assurance Pre-payment Pre-payment NRC MinirrurnArrounts as of: 12/31/2016 $ 440.8 $ 468.7 $ 909.5 Funds in External Trus1s as ot. 12131/2016 $ 614.0 $ 641.1 $ 1,255.2 (See Note2)

Funds in External Trus1s as ct. 12/31/2016 Minus NRC MinirrurnArrounts as of. 12/31/2016 $ 173.2 $ 172.5 $ 345.6 (See Notes 2 & 3)

Projected Annual Escalation Factor 0.00% 0.00%

Annual Trust Funds Earnings Ra1e

{After Tax& Fees -assumes 2% Real Rate ofRetum) 2.00% 2.00%

YearThatQ:lerating License Expires (Reflects License Renewal for Unit2 and Unit3) 2035 2045 NRC Minimum Financial Assurance Arrount 3.5 years after s1art of Decomrrissioning $ 440.8 $ 468.7 $ 909.5 Estirna1ed Funds in External Trus1s 3.5 Years afterstartofDecomrrissioning $ 950.9 $ 1,194.4 $ 2,145.3 (See Note 2)

Estirna1ed Funds in e>a:ess or(underfunded) to NRC Minirrurn 3.5 years after s1art of Decorrrrissioning in Future Value $ $ 510.0 $ 725.8 $ 1,235.8 Estimated funds in e>a:ess or(underfunded) to NRC Minirrurn Discounled using Annual Trust Funds Earnings Ra1e to 12/31/2016 $ $ 329.4 $ 389.6 $ 718.9

{See Notes 3 & 4)

Notes: Tables I through IV (Any minor differences in totals are due to rounding.)

1. MPS3 is jointly owned by Dominion Nuclear Connecticut, Inc. (93.4707%), Green Mountain Power Corporation (1.7303%) and Massachusetts Municipal WEC (4.7990%).

2. The External Trust Funds shown reflect the total amount of funds in the Trusts including MPS3 Minority Owners, all of which are available for Radiological Decommissioning.

3. Negative amounts (if any) indicate that the value of the Trust Funds are less than the value of the NRC Minimum.

4. The Future Value calculation for MPS2 and MPS3 reflects 2% Real Rate of Return applied 1/1/2017 to 3.5 years after start of Decommissioning assuming a 0.00% Esc Rate.

5. Adjustment Facto'rs used in calculating NRC Minimum Values are based on preliminary December 2016 BLS Producer Price Indexes, as final December 2016 indexes were not available at time of calculation.